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Keywords Studios has grown into a massive entity over the years, but EQT says it can increase the pace of its growth by turning it into a private company.
After months of speculation, Irish video game services company Keywords Studios is on track to be acquired by EQT Ventures in a £2.1bn deal.
This price reflects the valuation of the entire issued and to be issued ordinary share capital of Keywords Studios. The acquisition also implies an enterprise value of approximately £2.2bn. Keywords plans to recommend this deal to shareholders, RTÉ reports.
Based in Dublin and listed on the London Stock Exchange, Keywords provides services to some of the biggest names in gaming and entertainment, including Activision Blizzard, Microsoft, Epic Games, Ubisoft, Konami and Electronic Arts. It was founded in 1998 and has operations across dozens of countries globally.
However, the company’s share price dipped significantly last year and CEO Bertrand Bodson described 2023 as a “difficult year for the industry”. Private equity firm EQT has been trying to acquire Keywords Studios this year, but all of its previous proposals were rejected.
But after some discussion, EQT made a bid that represented a significant increase from its initial proposal, according to a Keywords statement seen by RTÉ at the time. The Dublin-based company’s share price has grown steadily over the past couple of months.
The latest offer of £24.50 per share reflects a premium of roughly 67pc to Keywords’ closing price of £14.70 per share on May 17, before the two companies entered into talks. This is smaller than the 70pc premium offer the companies disclosed in May.
EQT and its subsidiaries believe that they can help Keywords increase the pace of its growth and fulfil its long-term potential. The private equity firm also says Keywords Studios will be better able to fulfil its growth potential in the private market.
In a statement seen by RTÉ, Keywords chair Don Robert said the company’s board believes the offer represents “a good opportunity” for Keywords’ shareholders to realise value for their investment.
Keywords has been rapidly growing in recent years thanks to several mergers and acquisitions – it owns more than 70 studios worldwide. In May 2023, it acquired Hardsuit, a game development studio based in Seattle, further expanding its presence in the US.
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